Bankruptcy judge sets hearing on changing Fontainebleau Las Vegas bankruptcy to liquidation

Judge to consider Fontainebleau liquidation

LAS VEGAS — A federal bankruptcy court in Miami will hear a motion Oct. 28 by lenders of the Fontainebleau Las Vegas seeking to convert the resort’s bankruptcy case to a liquidation.

The U.S. Bankruptcy Court for the Southern District of Florida set the hearing Tuesday, four days after lenders said selling the partially built casino-hotel was the only way to realize any value on loans they’ve made on the project.

Fontainebleau developers have told the court they are negotiating to sell the 24-acre project to an unnamed buyer.

But analysts say the buyer would need $1.5 billion to finish the resort; Fontainebleau already owes $1.6 billion.

Bank lawyers say no progress has been made in Fontainebleau’s reorganization.